PMI adjustment on State return

[DesertEA]

I am keying in the returns I did in ProSeries for 2008 to ATX for a couple of reasons:

1. It helps me to learn the program and

2. I can stop quirks.

If I enter PMI on the Schedule A worksheet, it does not automatically add back to income (in my case on California Sch CA).

Does this have to be manually entered?

Thanks in advance for the help!

Bruce Tyler

Lancaster, CA.

[DesertEA]

Well, I wrote support about this. ATX does not subtract the PMI from mortgage interest claimed on Part II of Schedule CA. They said they may implement for 2009.

For all of you in California, I would check to see which clients had PMI for Federal purposes and advise your clients if you did not manually subtract the PMI from Federal itemized deductions. They should be advised of this.

In fact, if you are a CPA or Enrolled Agent, you are required to advise of the error. It is up to the client if they want to file an amended return.

Bruce Tyler

Lancaster, CA.